Former RBI Governor Raghuram Rajan asked to appear before Parliamentary Panel over NPAs. Read here

Former RBI Goverr Raghuram Rajan has been requested by Lok Sabha Committee on Estimates to appear before it over prevailing NPA (n-Performing Assets) problem that is being faced by Indian banks.

As per sources, a letter has been issued to Rajan, who was at he of Reserve Bank of India till September 2016 having been appointed to post during final year of Manmohan Singh-led UPA government. committee, which is heed by senior BJP parliamentarian Murli Mahar Joshi, has sought Raghuram Rajan's appearance in person, or, because he is currently based abro, his response via mail. 

COMMITTEE ON ESTIMATES

As per Lok Sabha's website, Committee on Estimates is a Parliamentary committee comprising 30 members that are selected each year from members of lower house, with committee's chairperson being appointed by Speaker. committee's function is to:

• (a) report what ecomies, improvements in organisation, efficiency or ministraive reform, consistent with policy underlying estimates may be effected 
• (b) To suggest alternative policies in order to bring about efficiency and ecomy in ministration 
• (c) To examine wher money is well laid out within limits of policy implied in estimates
• (d) To suggest form in which estimates shall be presented to Parliament. 

NPA PROBLEM

Committee on Estimates is looking to discuss NPA problem, which has seen b loans on books of Indian banks mounting to unprecedented levels, impacting ir capability to infuse credit into system, among many or problems. RBI, which is nation's central bank and is in charge of determining monetary policy, has taken a number of measures over last few years to pave way for se NPAs to be resolved, with some of biggest defaulters being targeted first. Measures began during Rajan's time and continued under his successor Urjit Patel, current RBI Goverr.

Patel has also appeared before a parliamentary panel over NPAs, recent bank scams, and or issues, and more recently, outgoing Chief Ecomic visor (CEA) Arvind Subramanian who h succeeded Rajan in post when latter became RBI Goverr, appeared before it. Subramanian is said to have credited Rajan for identifying NPA problem, which, as of December 2017, has risen to Rs 9 lakh crore or just over 10% of total vances. Of this, over 85% of NPAs are on balance sheets of public sector banks (PSBs). Subramanian also claimed that lending in se cases, especially by PSBs, may have been influenced politically. 

Rajan is currently Karine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business. He is credited with predicting 2008-09 US Subprime loans-linked recession, but has also been questioned over a change me to 20-80 Gold Scheme by retreating UPA government in its very last days that was ratified by RBI and allegedly facilitated activities of PNB Bank scam-accused Nirav Modi and Mehul Choksi.

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